BitMEX Launches Meme Basket Index Perp, Effectively Becoming the Second Hub to Offer This Kind of Basket Index in 2024

Meme coins continue to ascend the ranks as crypto adoption continues to grow. Meanwhile, the development comes amid a sector bloodbath

BitMEX exchange launched its own version of an S&P 500 for meme coins on Thursday, becoming the second major hub to offer this kind of basket index in 2024.

Meme coins continue to rise in popularity as crypto adoption grows. However, the development comes amid a sector bloodbath, with some altcoins posting double-digit losses.

BitMEX Launches Meme Basket Index Perp

The trading platform is calling its MEMEMEXTUSDT contract the “S&P 500 for crypto memecoins,” which is margined in Tether’s USDT stablecoin with up to 25X leverage. It will track and offer exposure to the top meme coins, in a manner that is reminiscent of the premier US stock market index. The S&P 500 tracks the prices of large-cap US stocks.

“Users can bet on the overall performance of the assets in one go, rather than holding individual tokens,” BitMEX wrote in the announcement. It added, “By trading the contract, you get exposure to the entire basket of meme coins in our Meme Basket Index, without having to hold any of the individual tokens.”

The top meme coins that are featured in the basket index include Pepe (PEPE), Shiba Inu (SHIB), Dogwifhat (WIF), Dogecoin (DOGE), and Bonk Inu (BONK). Other meme coins that are included in the index are FLOKI, BRETT, BOME, MEME, and MOG. The weighted methodology is based on market share, which will ensure that the selection is made on the basis of market value metrics.

Read More: 7 Hot Meme Coins And Altcoins That Are Trending In 2024

This product comes barely two months after the investment firm VanEck launched its MEMECOIN Index. MemeVector, as the product from VanEck is christened, only tracks the first five tokens that were mentioned by BitMEX. The asset manager disclaimed, “Coins are intended for entertainment purposes.”

The disclaimer from VanEck is likely because meme coins were never considered to be a serious matter in the past. As Forbes describes them, they are “cryptocurrencies inspired by memes and internet jokes, with little or no fundamental value.” However, some traders consider them to be a global shilling point for speculative liquidity.

“Meme coins may seem unconventional, but they highlight the power of community in crypto,” Tron founder and Huobi Global advisor Justin Sun said during Token2049.

Meme Coins Go Mainstream

Meme coins are a volatile sector with a tendency for wild price fluctuations that are driven by market sentiment. Nonetheless, they have managed to climb progressively higher in 2024, which was jumpstarted by the Avalanche Foundation in December. The Foundation committed to supporting diverse and culturally significant initiatives.

“The Avalanche Foundation intends to begin using Culture Catalyst to recognize and encourage the culture and fun symbolized by meme coins by purchasing select Avalanche-based meme coins to create a collection. This move complements the Avalanche Foundation’s ongoing engagement across the Avalanche ecosystem, including NFTs, RWAs, and other types of crypto assets, broadening its portfolio to embrace a more complete spectrum of possibilities,” Avalanche wrote.

The commitment from the Foundation to investing in meme coins made the sector a good cryptocurrency niche. Already, analysts are predicting that this sector could lead the next altcoin season.

Read More: Best Crypto To Buy Now: Top Coins To Keep An Eye On In July 2024

The launches from the VanEck and BitMEX exchange are advancing the niche further. As meme coin adoption continues, more conservative investors could begin to approach the scene in the same way that Bitcoin spot ETFs (exchange-traded funds) brought BTC to Wall Street.

“Retail investors are drawn to meme coins because they offer the same opportunities as venture capitalists during seed, pre-seed, and private sale rounds,” Jonas Dovydaitis, Co-Founder & CEO at PAiT, told BeInCrypto.

Meanwhile, meme coins are dumping, as the sector’s market capitalization fell by nearly 9% to reach $42 trillion. This is part of a market-wide crash that was led by Bitcoin, which is down 5% to trade for $57,459 at the time of writing.

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